Whilst many businesses use Key Performance Indicators (KPIs) to track their progress in a number of areas, for a large number this is a futile exercise as results are not analysed and put into a plan of action.
Whether you are planning to grow, measuring your employees’ performance, tracking returns on a particular marketing campaign or measuring customer satisfaction, KPIs are an extremely effective tool to use to ensure goals are met and issues are identified.
How can you implement KPIs for a more effective workforce?
First and foremost, your business needs to identify the KPIs that will specifically track progress of company goals. Say for example you would like to increase your customer base by 25%, there are a number of KPIs that you can track in order to review progress:
- Customer retention
- The number of enquiries you receive
- The number of relevant enquiries you receive
- The conversion rate from enquiry to customer
Monitoring each of these figures accurately and regularly will provide not only an indication of progress towards your business’ goals, but also help in identifying issues within areas of the business that may be hindering progress.
Tracking KPIs is not about punishing your workforce if a goal is not reached (and this should be clearly stressed to staff), but KPIs should be used to identify areas in need of attention so that a plan of action can be put into place.
Issues may be down to a number of reasons, from further training requirements, low job satisfaction or any number of other reasons; having an avenue to address these issues will ultimately benefit your business as a whole.
On the other side of the coin, tracking KPIs is also a fantastic way to reward your workforce for their hard work; by providing an incentive for your staff to reach a particular goal, the reality of actually hitting that target is all the more likely.